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Malaysia Continues to Attract Business Interest

Kuala Lumpur, 16 August 2019 – “Despite the challenging global economic landscape and more intense competition, Malaysia continued to sustain its investment growth momentum in the first half of 2019 (1H2019),” said YB Datuk Darell Leiking, Minister of International Trade and Industry (MITI).

Malaysia recorded a total of RM92.0 billion of approved investments in the services, manufacturing and primary sectors for 1H2019, a modest increase of 7.6% compared with RM85.5 billion for the same period last year. These investments involved 2,554 projects and will create 59,542 employment opportunities in the country.

The services sector accounted for the largest share of the total with investments amounted to RM55.0 billion or 59.8%, followed by the manufacturing sector with RM33.1 billion (36.0%) and primary sector with
RM3.9 billion (4.2%).

“In 1H2019, foreign investments in the manufacturing, services and primary sectors increased by 97.2% to RM49.5 billion from RM25.1 billion recorded in the first half of 2018. Domestic investments approved in 1H2019 amounted to RM42.5 billion, contributing 46.2% to the total. This illustrates Malaysia competitive and comparative advantages in attracting investments amid mounting global market uncertainties and trade war tensions,” said YB Datuk Darell.

Services Sector

A total of 2,150 services projects were approved in 1H2019. These projects are expected to create more than 28,650 job opportunities. The real estate sub-sector remains as the largest contributor with RM18.5 billion despite a decline of 35.1% from 1H2018. However, the global establishment, distributive trade, utilities and the hotel and tourism sub-sectors have all recorded increases during the period, accounting for 54.4% of total approved investments in the services sector. The distributive sub-sector, in particular, recorded a significant rise of 277.8% to RM10.2 billion from RM2.7 billion in 1H2018 for the period of January to June 2019.

Domestic investments made up the larger portion, recording RM32.6 billion or 59.3% of the total approved investments for the sector during this period while the remainder, RM22.4 billion were from foreign sources.

A notable services project approved in 1H2019 is the large scale solar (LSS) expansion project to be undertaken by TNB Bukit Selambau Solarin Bukit Selambau, Kedah. The LSS project with a capacity of 30 MWAC will provide renewable energy (RE) totalling 1,700MW by the year 2025. This is in line with the Government’s target of achieving 20 per cent of the country’s electricity to be generated from renewable sources by 2030.

Manufacturing Sector

The positive investment growth of 1H2019 was driven by the robust performance of the manufacturing sector that soared by 74.2% compared to 1H2018. Malaysia’s manufacturing sector recorded approved investments of RM33.1 billion from 366 manufacturing projects for the first half of 2019 as compared to RM19.0 billion from 288 manufacturing projects in the same period last year. Majority of the investments, 75.8% or RM25.1 billion were from foreign investments and the remaining 24.2% or RM8 billion were from domestic sources.

The approved manufacturing projects will create 30,449 job opportunities the largest potential employer in the economy. The jobs created include 1,829 electrical and electronics engineers, 896 mechanical engineers and 211 chemical engineers. In addition, the projects will also require about 2,886 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders.

The top foreign sources were from the United States of America (USA) with investments of RM11.7 billion, followed by China (RM4.8 billion), Singapore (RM3.1 billion), Japan (RM2.1 billion) and the British Virgin Islands (RM1.4 billion). These five countries jointly accounted for 92.0% of total foreign investments approved in the manufacturing sector for this period.

“The expansion project of Longi Technology (Kuching) from China is amongst the notable high technology project approved from January to June 2019. The company is expanding its capacity to produce monocrystalline solar cell to meet demand in overseas markets. Other approved projects include a new project from Advance Energy Industries and expansion projects by On Semiconductors and Plexus Manufacturing. These three companies are from the USA,” added YB MITI Minister.

“Malaysia has vast potentials to collaborate with foreign companies and benefit through the transfer of technologies and expertise that cut across many industries. The Ministry of International Trade and Industry (MITI) through MIDA continues to encourage local sourcing by foreign companies.

We want to see more local companies to be part of the global value chain,” said YB MITI Minister.

As the Government is drafting the 12th Malaysian Plan, the contribution of the catalytic and high growth subsectors namely electrical & electronics, chemical & chemical products, machinery & equipment, medical devices and aerospace emphasised under the 11th Malaysia Plan Mid-Term Review cannot be denied. In 1H2019, these sectors contributed RM19.1 billion or 57.7% of total approved investments in the manufacturing sector through 131 approved project. Once implemented, these projects will potentially create 16,732 job opportunities and further energise the development of the overall manufacturing sector.

Malaysia has consistently pursued more capital intensive projects: moving away from labour-intensive projects to high-skilled and technologically advanced projects that support the sustainable development agenda of the nation. The capital intensity, measured by capital investment per employee (CIPE) ratio of projects approved within the sector increased toRM1,088,715 in January to June 2019 from RM837,862in the same period last year.

By value of investments, Pulau Pinang (RM9.2 billion), Kedah (RM7.7 billion), Selangor (RM6.0 billion), Johor (RM4.0 billion) and Perak (RM1.7 billion) accounted for 86.4% of the total approved investments in the manufacturing sector.

Primary Sector

The primary sector contributed RM3.9 billion or 4.2% to the total approved projects in the first half of 2019. The mining subsector continued to lead with approved investments of RM3.6 billion, followed by plantation and commodities with RM257.3 million and agriculture with RM48.6 million. These investments are expected to create 443 job opportunities.

The agriculture sector illustrated a modest growth of 25.6% to RM48.6 million during 1H2019 from RM38.7 million during 1H2018 driven by approved investments in crops-related agriculture project.

Conclusion

“Malaysia is striving to keep the nation’s deficit, inflation and unemployment low while putting in place policies that are pro-business. The Government is investing in human capital, technology and infrastructure and focusing on sharpening the countries competitive edge. Coupled with strategic promotions to welcome quality investments that will contribute to enhancing the country’s technological capabilities, develop the local supply chain and increase the country’s export revenue, Malaysia’s 1H2019 investment performance is the testament of the Government’s commitment to remain pro-business with prudent and pragmatic policies to ensure a conducive environment for businesses to thrive,” said YB Datuk Darell Leiking.

************************************

ABOUT MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook, @OfficialMIDA.

Malaysia Continues to Attract Business Interest


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Foreign Investments in the Manufacturing, Services and Primary Sectors Increase by 97.2%

Kuala Lumpur, 16 August 2019 – “Despite the challenging global economic landscape and more intense competition, Malaysia continued to sustain its investment growth momentum in the first half of 2019 (1H2019),” said YB Datuk Darell Leiking, Minister of International Trade and Industry (MITI).

Malaysia recorded a total of RM92.0 billion of approved investments in the services, manufacturing and primary sectors for 1H2019, a modest increase of 7.6% compared with RM85.5 billion for the same period last year. These investments involved 2,554 projects and will create 59,542 employment opportunities in the country.

The services sector accounted for the largest share of the total with investments amounted to RM55.0 billion or 59.8%, followed by the manufacturing sector with RM33.1 billion (36.0%) and primary sector with RM3.9 billion (4.2%).

“In 1H2019, foreign investments in the manufacturing, services and primary sectors increased by 97.2% to RM49.5 billion from RM25.1 billion recorded in the first half of 2018. Domestic investments approved in 1H2019 amounted to RM42.5 billion, contributing 46.2% to the total. This illustrates Malaysia competitive and comparative advantages in attracting investments amid mounting global market uncertainties and trade war tensions,” said YB Datuk Darell.

Services Sector

A total of 2,150 services projects were approved in 1H2019. These projects are expected to create more than 28,650 job opportunities. The real estate sub-sector remains as the largest contributor with RM18.5 billion despite a decline of 35.1% from 1H2018. However, the global establishment, distributive trade, utilities and the hotel and tourism sub-sectors have all recorded increases during the period, accounting for 54.4% of total approved investments in the services sector. The distributive sub-sector, in particular, recorded a significant rise of 277.8% to RM10.2 billion from RM2.7 billion in 1H2018 for the period of January to June 2019.

Domestic investments made up the larger portion, recording RM32.6 billion or 59.3% of the total approved investments for the sector during this period while the remainder, RM22.4 billion were from foreign sources.

A notable services project approved in 1H2019 is the large scale solar (LSS) expansion project to be undertaken by TNB Bukit Selambau Solarin Bukit Selambau, Kedah. The LSS project with a capacity of 30 MWAC will provide renewable energy (RE) totalling 1,700MW by the year 2025. This is in line with the Government’s target of achieving 20 per cent of the country’s electricity to be generated from renewable sources by 2030.

Manufacturing Sector

The positive investment growth of 1H2019 was driven by the robust performance of the manufacturing sector that soared by 74.2% compared to 1H2018. Malaysia’s manufacturing sector recorded approved investments of RM33.1 billion from 366 manufacturing projects for the first half of 2019 as compared to RM19.0 billion from 288 manufacturing projects in the same period last year. Majority of the investments, 75.8% or RM25.1 billion were from foreign investments and the remaining 24.2% or RM8 billion were from domestic sources.

The approved manufacturing projects will create 30,449 job opportunities the largest potential employer in the economy. The jobs created include 1,829 electrical and electronics engineers, 896 mechanical engineers and 211 chemical engineers. In addition, the projects will also require about 2,886 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders.

The top foreign sources were from the United States of America (USA) with investments of RM11.7 billion, followed by China (RM4.8 billion), Singapore (RM3.1 billion), Japan (RM2.1 billion) and the British Virgin Islands (RM1.4 billion). These five countries jointly accounted for 92.0% of total foreign investments approved in the manufacturing sector for this period.

“The expansion project of Longi Technology (Kuching) from China is amongst the notable high technology project approved from January to June 2019. The company is expanding its capacity to produce monocrystalline solar cell to meet demand in overseas markets. Other approved projects include a new project from Advance Energy Industries and expansion projects by On Semiconductors and Plexus Manufacturing. These three companies are from the USA,” added YB MITI Minister.

“Malaysia has vast potentials to collaborate with foreign companies and benefit through the transfer of technologies and expertise that cut across many industries. The Ministry of International Trade and Industry (MITI) through MIDA continues to encourage local sourcing by foreign companies.

We want to see more local companies to be part of the global value chain,” said YB MITI Minister.

As the Government is drafting the 12th Malaysian Plan, the contribution of the catalytic and high growth subsectors namely electrical & electronics, chemical & chemical products, machinery & equipment, medical devices and aerospace emphasised under the 11th Malaysia Plan Mid-Term Review cannot be denied. In 1H2019, these sectors contributed RM19.1 billion or 57.7% of total approved investments in the manufacturing sector through 131 approved project. Once implemented, these projects will potentially create 16,732 job opportunities and further energise the development of the overall manufacturing sector.

Malaysia has consistently pursued more capital intensive projects: moving away from labour-intensive projects to high-skilled and technologically advanced projects that support the sustainable development agenda of the nation. The capital intensity, measured by capital investment per employee (CIPE) ratio of projects approved within the sector increased toRM1,088,715in January to June 2019 from RM837,862in the same period last year.

By value of investments, Pulau Pinang (RM9.2 billion), Kedah (RM7.7 billion), Selangor (RM6.0 billion), Johor (RM4.0 billion) and Perak (RM1.7 billion) accounted for 86.4% of the total approved investments in the manufacturing sector.

Primary Sector

The primary sector contributed RM3.9 billion or 4.2% to the total approved projects in the first half of 2019. The mining subsector continued to lead with approved investments of RM3.6 billion, followed by plantation and commodities with RM257.3 million and agriculture with RM48.6 million. These investments are expected to create 443 job opportunities.

The agriculture sector illustrated a modest growth of 25.6% to RM48.6 million during 1H2019 from RM38.7 million during 1H2018 driven by approved investments in crops-related agriculture project.

Conclusion

“Malaysia is striving to keep the nation’s deficit, inflation and unemployment low while putting in place policies that are pro-business. The Government is investing in human capital, technology and infrastructure and focusing on sharpening the countries competitive edge. Coupled with strategic promotions to welcome quality investments that will contribute to enhancing the country’s technological capabilities, develop the local supply chain and increase the country’s export revenue, Malaysia’s 1H2019 investment performance is the testament of the Government’s commitment to remain pro-business with prudent and pragmatic policies to ensure a conducive environment for businesses to thrive,” said YB Datuk Darell Leiking.

************************************

ABOUT MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era.

For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook, @OfficialMIDA.

Posted on : 16 August 2019

Malaysia Continues to Attract Business Interest


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The Seminar on the New Era of Manufacturing for Furniture & Wood-Based Industry by Malaysian Investment Development Authority (MIDA) held on 23 January 2019 in Kota Kinabalu received encouraging interest from industry players. The immediate response came from three companies based in Peninsular Malaysia that would like to leverage resources available in Sabah and expand their business operations in the State. To facilitate these companies’ interests, MIDA arranged discussions with Yayasan Sabah, POIC Lahad Datu and Sabah Softwood Berhad towards strategic collaborations

25 January 2019, Kuala Lumpur – The Seminar on the New Era of Manufacturing for Furniture & Wood-Based Industry by Malaysian Investment Development Authority (MIDA) held on 23 January 2019 in Kota Kinabalu received encouraging interest from industry players. The immediate response came from three companies based in Peninsular Malaysia that would like to leverage resources available in Sabah and expand their business operations in the State. To facilitate these companies’ interests, MIDA arranged discussions with Yayasan Sabah, POIC Lahad Datu and Sabah Softwood Berhad towards strategic collaborations.

The event, which focused on automation and smart manufacturing to promote the adoption of industry 4.0 among the wood-based industry players, was officiated by Datuk Madiyem Layapan, Permanent Secretary of Sabah Ministry of Trade & Industry. It attracted nearly 150 participants including those from outside of Sabah and featured presentations by Department of Industrial Development & Research (DIDR), Sabah State Forestry Department, ABB Malaysia Sdn Bhd and Malaysian Timber Industry Board (MTIB). They shared on the current status of the infrastructure and the availability of resources in Sabah as well as product innovation and potential in downstream activities.

Datuk N. Rajendran, Deputy Chief Executive Officer of MIDA during his welcoming remarks said, “With abundant natural resources, Sabah is poised for more investments in the wood and wood-based industry. The recent announcement made by Yang Amat Berhormat Datuk Seri Panglima Haji Mohd Shafie Bin Haji Apdal to make Sandakan as a furniture centre in Sabah is certainly a step in the right direction for the State. MIDA acknowledges the importance that furniture and wood-based industry plays as one of the key industries to be developed in the State.”

As at September 2018, a total of 2,919 projects on furniture and wood-based products projects have been approved by MIDA with investment worth RM33.02 billion. Majority of these investment or 67% (RM22.14 billion) were from domestic sources, while the rest (33% or RM10.88 billion) were from foreign investments. For Sabah, MIDA has approved a total of 466 furniture and wood-based projects with total investments of RM5.36 billion.

One of the participants, Mr. Jason Lee, Manager of Forest Avenue International Sdn Bhd said, “Going downstream has proven to be very profitable for West Malaysia. In Sabah’s perspective, this direction can never be wrong. The future of Sabahans depends on their willingness to move out of their comfort zone and be ready to embrace the real world market.”

According to Mr. Tan Peng Juan, Chairman of Sabah Timber Industries Association (STIA), “To address on the issue of export ban of logs, STIA has suggested on establishment of a working committee that consist of Sabah-based industry representatives and Government agencies. The aim is to assist the government in facilitating the new forestry policy, to ensure that the correct form of investment is brought into Sabah, and to monitor the progress of industrial development. It is essential for the state government to have a permanent collaboration with industry players to ensure that there is a consistency in short-, mid- and long-term plans under the new forestry masterplan. STIA also insisted that Sabah state government should give clear direction on the permanent ban of export of timber logs from Sabah.”

Due to the good feedback received, MIDA will continue to organise similar engagements in Sabah to promote more investments in the wood-based industry. It will feature bankers to facilitate financial assistance.

***

For more information, please contact:

Mr. Mohd Rasli Muda

Director, Food Technology & Resource-Based, MIDA

Tel.: 03-2267 3643| Email: [email protected]

Posted on : 25 January 2019

More Investors Expressed Interest in Sabah’s Furniture And Wood-Based Industry


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Four IHLs Receive Automation Equipment Worth RM200,000 from Muehlbauer

Kuala Lumpur, 22 January, 2019 – Muehlbauer Technologies announced at the headquarters of the Malaysian Investment Development Authority (MIDA) today that the company is donating RM200,000 worth of automation integrated systems known as the Beckhoff mock-up units from its Melaka operations to the Universiti Malaysia Pahang (UMP), Universiti Technical Malaysia Melaka (UTeM), Universiti Tun Hussein Onn Malaysia (UTHM) and the German Malaysian Institute (GMI).

In addition, all four higher learning institutions will be getting approximately 40 hours of training as well as support expansion of the equipment which includes image/vision processing technology or other advancements according to the institutions’ requirements, from Muehlbauer.

“We are pleased that more and more companies are responding positively to our call in narrowing the gap between the latest practical know-how of the industry and university syllabus. We continue to encourage companies to invest in talent and technology to improve productivity and capability, and become future-proof. We also place great importance in engaging with potential investors – particularly large MNCs as they come equipped with the technology and processes required for our industries to grow and diversify,” Dato’Azman Mahmud, Chief Executive Officer of MIDA.

“This initiative will contribute in many ways, especially in enabling lecturers and students to be familiar with the latest technologies in the industry. It will also provide hands-on experience for students in Mechatronics Engineering or those interested in joining the high-tech industry related to mechanical, electrical and electronics, programming and vision technologies. I would like to encourage other global companies to emulate these practices and bring the industry to the next level,” added Dato’ Azman.

“Already for several years we are supporting the local communities by having a fruitful collaboration with the Malaysian Universities; Colleges and Institutes,” said Mr Sekar Ramasamy, the CEO of Muehlbauer Technologies. “With this donation and by enhancing the practical education at the Universities we want to lift this partnership to the next level and help the students to get ready for the challenges of digitalization and Industry 4.0,” he added.

Muehlbauer is also part of the German Dual Vocational Training (DVT) programme, a skill training programme by the Malaysian-German Chamber of Commerce and Industry (MGCC) ) in cooperation with the Department of Skills Development of the Ministry of Human Resources (MOHR) and GMI. Last year, 19 students were granted internship placement with Muehlbauer Technologies. The company also provides industrial visitation to universities and institutions.

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PRESS CONTACTS

Muhammad Ashraf

Phone: +606 2517 250

E-mail: [email protected]

Racheal Lim

Phone: +606 2517 178

E-mail: [email protected]

ABOUT MUEHLBAUER

Mühlbauer Group is the only one-stop-shop technology partner for Smart Card, passport/ePassport, Semiconductor and RFID industry. With more than 2,000 employees, technology centers in Germany, Malaysia, the U.S. and Slovakia, and a worldwide sales and service network, the Mühlbauer Group is the world’s market leader in innovative systems and software solutions for the production and personalization of cards, passports and RFID applications. For more information, please visit www.muehlbauer.com.my and like us on Facebook https://www.facebook.com/dvtmbt/

ABOUT MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

For further information, please contact:-

Mr. Shahrol Shahabudin

Director, Machinery & Equipment Division           

03-2267 6674 | [email protected]

Mr. Mohamad Ismail Abu Bakar

Director, Industry Talent Management And Expatriate Division

03-2267 6715 | ismail @mida.gov.my

Download:

Speech by CEO of MIDA_MIDA Muehlbauer collaboration with 4 IHLs

Posted on : 22 January 2019

More Companies Responding to MIDA’s Call to Narrow Skills Gap


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India continues to be one of Malaysia’s important sources of FDI, particularly in the manufacturing sector and remains to be among the top 20 investors in the country. As at September 2018, a total of 135 manufacturing projects with participation from India have been implemented. These investments, valued at RM5.5 billion have created more than 15,000 jobs for the country. Majority of these investments were in the textiles and textile products, chemical and chemical products, paper and printing, non-metallic mineral products, electronics and electrical products and basic metal products

14 Feb 2019, Kuala Lumpur – India continues to be one of Malaysia’s important sources of FDI, particularly in the manufacturing sector and remains to be among the top 20 investors in the country. As at September 2018, a total of 135 manufacturing projects with participation from India have been implemented. These investments, valued at RM5.5 billion have created more than 15,000 jobs for the country. Majority of these investments were in the textiles and textile products, chemical and chemical products, paper and printing, non-metallic mineral products, electronics and electrical products and basic metal products.

Notable Indian companies that have made Malaysia their manufacturing base include Reliance Group in textiles and textile products, RP Chemical in chemical and chemical products, Ranbaxy in pharmaceutical products and Tamco Switchgear in the electrical and electronics products industry. Indian firms have also ventured actively into the country’s services sectors. These include ICICI Bank Limited in the finance sector; Wipro, Infosys and Tata Consultancy in IT services; Sky Blue Media in the media advertising sector; and Manipal International in the education and healthcare sector.

“Despite the favourable account of Indian investments in Malaysia, MIDA believes that there is much more room for Indian investors to increase their footprints in the Malaysian economy. We have been intensifying our investment promotion efforts, which include identifying specific projects looking for foreign investors as well as leveraging on strategic partnerships with business associations. Today, we are happy to renew our partnership with the Confederation of Indian Industry (CII) through the signing of a Memorandum of Understanding (MoU). This will strengthen our engagements in providing rewarding exchanges to both our business communities, especially with CII’s 9,000 members including SMEs and MNCs in various areas,” said Dato’ Azman Mahmud, CEO of the Malaysian Investment Development Authority (MIDA).

The MoU was signed by Mr Arham Abdul Rahman, Deputy CEO of MIDA and Dr. Noushad Forbes, Chairman, International Council of CII at the MITI Tower, in conjunction with the 8th Malaysia- India CEO Forum (MICEOF) today. Previously, MIDA has signed the MoU with CII back in 2000 and since then, both parties has undertaken many collaboration and programmes to strengthen Malaysia-India business opportunities. Among them include the CII Partnership Summit in 2014 and India-Malaysia Business Forum in 2017, as well as various networking and business matching sessions with Indian companies organised by MIDA and CII.

“As this MoU will bring a stronger commitment from both parties, I am confident that this collaboration will further drive quality investments into Malaysia in the years to come. Having CII members with experience in doing business with Malaysia will be beneficial in bringing relevant and interesting insights to other Indian investors. By working closely to achieve the deliverables contained in the MoU, MIDA and CII will indirectly contribute to the strengthening of bilateral relationship between both countries that has been growing over the past 62 years,” added the CEO of MIDA.

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For further information, please contact:

Mr. Nelson Samuel

Director, Foreign Investment Promotion, MIDA

Tel: 03-2267 3787 Email: [email protected]

ABOUT MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

ABOUT CII

Confederation of Indian Industry (CII) is society registered under Societies Registration Act, 1860 and is a non-government, not-for-profit, industry-led and industry-managed organisation, playing a proactive role in India’s development process. Founded in 1895, India’s premier business association has around 9,000 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 300,000 enterprises from around 265 national and regional sectoral industry bodies. CII works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes.

Posted on : 14 February 2019

Indian Investors to Capitalise on Business Opportunities in Malaysia


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The Malaysian Investment Development Authority (MIDA) has approved a total of 1,120 manufacturing projects with investments worth RM137.3 billion in Sarawak as at September 2018. These projects have created over 175,000 job opportunities, mainly in the natural gas, chemical and chemical products, basic metal products, petroleum products (including petrochemicals) and electronics and electrical products sectors

29 January 2019, Kuala Lumpur – The Malaysian Investment Development Authority (MIDA) has approved a total of 1,120 manufacturing projects with investments worth RM137.3 billion in Sarawak as at September 2018. These projects have created over 175,000 job opportunities, mainly in the natural gas, chemical and chemical products, basic metal products, petroleum products (including petrochemicals) and electronics and electrical products sectors.

“Being the largest of all 13 states in Malaysia, there are certainly many reasons for companies to base their operations in Sarawak. There is already a strong presence of MNCs and large Local Corporations (LLCs) in the state. These companies, such as Petronas, OCIM, Longi, X-Fab and Press Metal, hold much promise for business collaborations and opportunities,” said Mr Zabidi Mahbar, Senior Executive Director of MIDA’s Strategic Planning and Development Division during the MIDA Invest Series: Unfolding States’ Business Potential held today at the MIDA Headquarters.

“MIDA has set-up a dedicated team namely the Investment Coordination Platform (ICP) to facilitate companies to grow their businesses and investment portfolio since last year. The unit works closely with equity and corporate advisory firms as well as local regulators and technology providers in assisting companies to conduct business-to-business matching, capital raising exercise through debt & equity, M&A, divestment and initial public listing or IPO. We urge all interested parties to discuss with MIDA on how they can be facilitated in these areas,” added Mr Zabidi.

Another initiative introduced by MIDA is the i-Services Portal, which is a single market place to link investors and companies interested to source for domestic services from local service providers. Local service providers are encouraged to register their business in the portal as it will help them to expand their markets and further boost business activities.

The Invest Series featured a briefing by Datu Liaw Soon Eng, Permanent Secretary from the Ministry of Industrial & Entrepreneur Development of Sarawak. The event attracted over 250 participants ranging from embassies, business chambers and associations as well as industry players from the services and manufacturing sector.

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About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook, @OfficialMIDA.

For more information, please contact:

Mr. Abdul Fatah Mohamed Rafaie

Deputy Director

Domestic Investment & Supply Chain Division, MIDA

Tel.: 03 2267 3766

Email: [email protected]

Download:

Speech by Senior Executive Director of MIDA_Invest Series_Sarawak

MIED Slides_MIDA Invest Series_Sarawak

Posted on : 29 January 2019

Sarawak Attracts RM137.3 Billion Worth Approved Manufacturing Projects as at September 2018


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Performance of the Manufacturing Sector Rose by 37.2%

 

MIPR2018

MEDIA RELEASE

APPROVED INVESTMENTS IN THE MANUFACTURING, SERVICES AND PRIMARY SECTORS CHART RM201.7 BILLION IN 2018
Performance of the Manufacturing Sector Rose by 37.2%

14 March 2019, Kuala Lumpur – “Malaysia is set to leverage on the improving trend of private investments bolstered by the positive sentiments arising from the new Government’s supportive policies and clear economic direction. This is reflected in the total approved investments in the manufacturing, services and primary sectors, which has increased from RM200.6 billion in 2017 to RM201.7 billion in 2018. To break it down further, investments approved for the period of January to June 2018 were valued at RM86.1 billion, while a total of RM115.6 billion investments were approved for the period of July to December 2018,” said YB Datuk Darell Leiking, Minister of the International Trade and Industry (MITI).

The ratio of foreign and domestic investments is in line with the Government’s aspiration for domestic investments to assume the pivotal role of driving Malaysia’s investment agenda. The pie was split with domestic direct investments (DDI) assuming 60.1% of the share at RM121.2 billion, while foreign direct investments (FDI) accounted for the remaining 39.9% or RM80.5 billion. Foreign investors continue to capitalise on uniquely Malaysian ecosystems and its regional synergies as FDI increased by 48% from RM54.4 billion in 2017.

The manufacturing sector emerged as the champion, recording a significant margin with approved investments totalling RM87.4 billion in 2018, a notable 37.2% higher, as compared to RM63.7 billion in 2017. The services and primary sectors recorded investments of RM103.4 billion and RM10.9 billion respectively in 2018.

Manufacturing Sector
Malaysia continued to attract high levels of foreign investments in the manufacturing sector despite the global economic slowdown. Foreign investments in approved manufacturing projects have more than doubled to RM58.0 billion in 2018 from 2017’s figure of RM21.6 billion, constituting 66.4% of the total approved investments in the manufacturing sector. This reflects the country’s success in its targeted approach in attracting investments in high value-added and knowledge-intensive industries.

Majority of FDI were in new projects, totalling RM40.3 billion (69.5%), with the remaining RM17.7 billion (30.5%) being expansion and diversification projects. This shows that in addition to existing foreign companies expanding or diversifying in the country, more international investors are choosing Malaysia as their preferred investment destination.

China, Indonesia, the Netherlands, Japan and the USA were the largest contributors to the manufacturing sector in Malaysia for 2018. These five countries jointly accounted for RM44.3 billion or 76.4% of the total foreign investments approved during the period.

Pentax Medical from Japan is among the foreign projects approved in the manufacturing sector. The company, which is one of the top three endoscopic and surgical system manufacturers in the world, will be setting up its new manufacturing facility in Penang. This project is expected to create 193 job opportunities, whereby 77% will be Malaysians particularly in the managerial, supervisory and technical category.

Another notable project is Jinjing Technology from China that will be located at the Kulim Hi-Tech Park. The company will contribute to the development of the solar and glass ecosystems in Malaysia. It will provide 855 job opportunities to Malaysians, with salaries between RM3,000 to RM10,000 a month.

Testhub is an exemplary Malaysian company in the E&E industry. It is the only Malaysian entity that has the capability to design and manufacture test boards and test programmes, as well as provides one stop testing solutions to global MNCs. This knowledge-based company, located in Melaka, employs highly skilled local talents in the fields of E&E engineering as well as physics.

“Capital intensive projects, which involve advanced technology and skilled manpower, dominated the manufacturing landscape, represented by the 81 projects approved with investments of RM100 million or more. This is 43.2% higher than in 2017. Investments into these projects reached RM75 billion or accounted for 85.9% of total investments approved in the manufacturing sector. This is in line with the country’s push towards more strategic and higher quality investments,” highlighted YB MITI Minister.

“The manufacturing sector remains a key contributor to the nation’s exports. Of the total 721 approved manufacturing projects, 30.7% or 221 projects will be making Malaysia their hub for the international markets, whereby at least 80% of their products will be exported,” added YB Minister.

The petroleum products including petrochemicals industry with approved investments of RM32.9 billion contributed the lion share to the overall manufacturing performance in 2018. A notable project in this industry is Sarawak Petchem which is part of the Sarawak State Government initiative to develop Bintulu as a petrochemical hub. This is in addition to investments by Pengerang Energy Complex and Petronas Chemicals Isononanol that will be located in Johor.

Other industries with high levels of approved investments include basic metal products, E&E products, paper, printing and publishing, chemicals and chemical products, rubber products, non-metallic mineral products and machinery and equipment.

The manufacturing projects approved in 2018 are expected to create employment opportunities for  59,294 people. Of these, 22,449 will be in the managerial, technical, supervisory and skilled workers category.

Services Sector
The services sector continued to be the cornerstone of the nation’s economic growth in 2018. The sector was the largest contributor to the total approved investments, amounting RM103.4 billion from 4,103 projects. Domestic investments contributed 84.1% or RM86.9 billion while foreign investments made up the rest or RM16.5 billion.

Foreign investors were strong in the distributive trade and global establishments subsectors recording RM4.8 billion and RM4.4 billion respectively. These two subsectors alone contributed 55.8% to the total foreign investments in the services sector.

Malaysia has been well positioned to attract MNCs to set up their global and regional bases in the country. To date, MIDA has cumulatively approved a total of 35 Principal Hub (PH) projects, with companies committing to business spending of RM35.1 billion, engaging the use of local ancillary services worth RM5.5 billion and creating 2,686 high-value jobs. For 2018 alone, a total of eight new Principal Hub projects were approved, with committed business spending of RM7.1 billion. Among the approved PH projects were Smart Modular Technologies, Frencken Group, Onwards Media Group (OMG) and Jobstreet.

US-based Smart Modular Technologies has made Malaysia its base to undertake supply chain management from 3rd party suppliers to 3rd party customers. This translates to employment opportunities for 90 Malaysians. The company will utilise big data, cloud computing and real-time analytics technology to efficiently manage its global supply chain, which will involve over one million components, 220 suppliers and network companies in 1,000 locations.

Another project is from Frencken Group, a high-tech capital and consumer equipment service provider. Through its newly established Principal Hub, Frencken Group has shifted the global supply chain management of its Integrated Manufacturing Services division from Singapore to Malaysia. The company will incur a business spending of RM89.9 million over the next 10 years and will train 30 employees in areas such as strategic supply chain management and financial planning.

“The global establishments and end-to-end supply chain management services are key components to the nation’s economy. These services create trade efficiency and competitive advantages for other Malaysian industries. Given that the services sector is dominated by domestic industry players, the Government has introduced various initiatives to provide more business opportunities for Malaysian service providers. This includes the introduction of a mechanism to encourage better linkages with local service providers in the fields of architecture, engineering, transportation, banking, insurance, legal and ICT,” said YB Datuk Darell Leiking.

Primary Sector
Investments in the primary sector registered a decrease of 12.2% from RM12.4 billion in 2017 to RM10.9 billion in 2018. This is largely due to lower investments in oil and gas exploration activities, under the mining subsector. The rest of the investments in the primary sector comprise of the plantation and commodities subsector, and the agriculture subsector, registered sustainable investments of RM601.8 million and RM68.8 million respectively.

Going Forward
The Malaysian economy is likely to remain on a steady path in 2019 as the country’s macroeconomic fundamentals remain strong despite domestic and external challenges. This optimism is shared by Bloomberg in its recent analysis of emerging markets, whereby Malaysia was ranked first due to its growth prospects, state of the current account, sovereign credit ratings and, stock and bond valuation.

“The Government has unveiled the National Budget 2019 to plot a path forward for Malaysia. It includes a mixture of stimuli, incentives, and safeguards to facilitate business and enhance the nation’s ongoing competitiveness. In addition, the year 2018 marked a significant stage in the country’s automation journey with the launch of Industry4WRD, the National Policy on Industry 4.0. The broad strategies and action plans under this framework will contribute to the progressive transformation of industries, boosting Malaysia as a key player on the world stage,” said YB MITI Minister.

“MITI and MIDA trust that with the existing policies in place, Malaysia will continue to spark confidence in investors and business owners, and attract more quality investments this year. As to date, MIDA has 399 manufacturing and services projects with investments totalling RM23.7 billion in the pipeline,” added YB MITI Minister.

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For more information, please contact:
Puan Zalina Zainol
Director, Corporate Communications Division, MIDA
Tel.: 03- 2263 2437| Email: [email protected]

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Download  Investment Performance Report 2018

View Investment Data

Posted on : 14 March 2019

Approved Investments in the Manufacturing, Services and Primary Sectors Chart Rm201.7 Billion In 2018


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The Malaysian Investment Development Authority (MIDA) signed a Memorandum of Understanding (MoU) with the Korea Trade-Investment Promotion Agency (KOTRA) today, in conjunction with the visit of His Excellency Moon Jae-In, President of the Republic of Korea to Malaysia this week. The partnership includes information exchanges on investment environment, opportunities, and promotion activities, as well as best practices of investment promotion

12 March 2019, Kuala Lumpur – The Malaysian Investment Development Authority (MIDA) signed a Memorandum of Understanding (MoU) with the Korea Trade-Investment Promotion Agency (KOTRA) today, in conjunction with the visit of His Excellency Moon Jae-In, President of the Republic of Korea to Malaysia this week. The partnership includes information exchanges on investment environment, opportunities, and promotion activities, as well as best practices of investment promotion.

“MIDA has been working together with KOTRA for a long time. Every year we organise investment missions to South Korea where there will be seminars, roundtable meetings, and one-on-one sessions with Korean investors, to promote business opportunities in Malaysia as well as to provide updates on the latest policies and economic landscape. KOTRA has always been one of our supporting organisations. So, we are excited to seal this strong cooperative relationship in investment promotion,” said Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA.

“We trust that through this partnership, we will be able to leverage on KOTRA’s establishments in ten regional headquarters, and 124 overseas centres in 86 countries. With this, we will also be able to provide more rewarding connections for both our business communities. As Korea is well known for its advanced technologies particularly on robotics, we hope to get more of such investments in these areas, particularly as Malaysia is going full speed into the knowledge and digital economy,” added Dato’ Azman.

MIDA in collaboration with the Korea Chamber of Commerce and Industry (KCCI) will be organising the Malaysia-Korea Business Forum at the Mandarin Oriental Hotel Kuala Lumpur on 14 March 2019. The event is expected to gather 400 participants, which will mostly be Korean businessmen. The President of the Republic of Korea and the Minister of International Trade and Industry Malaysia will grace the event. KOTRA is one of the supporting organisations for this event.

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For further information, please contact:

Mr. Nelson Samuel

Director, Foreign Investment Promotion, MIDA

Tel: 03-2267 3787

Email: [email protected]

ABOUT MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

ABOUT KOTRA

Korea Trade-Investment Promotion Agency (KOTRA) is KOTRA Republic of Korean government’s trade and investment promotion arm to enhance national prosperity and competitiveness. KOTRA assists interested parties worldwide to do business with Korea with extensive worldwide network of Korea Business Centres in 86 countries. Please visit www.kotra.or.kr

Download:

Speech by CEO of MIDA_MIDA & KOTRA MoU Signing Ceremony

Posted on : 12 March 2019

MIDA and KOTRA Signs MoU for Investment Promotion Cooperation


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Boss Aerosystem Opens Manufacturing and Fabrication Facility in Penang

Kuala Lumpur, 8 March 2019 – Malaysia welcomes another homegrown aerospace company with the opening of Boss Aerosystem’s manufacturing facility at the Bukit Minyak Industrial Park, Pulau Pinang today. Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA in his opening speech at the event said, “It is indeed a point of national pride to have Boss Aerosystem to be part of the international supply chain. We look forward to more local companies emulating Boss Aerosystem and become global champions. Industry players are encouraged to leverage on facilities and platforms made available by the Government as Malaysia has all the right ingredients for the aerospace industry to flourish.”

Aerospace is a fast growing industry in Malaysia. It has been growing at an average of 5% over the past 10 years and continues to generate high skilled jobs, and develop an ecosystem of suppliers in the country. Malaysia is presently home to more than 230 companies, which are involved in maintenance, repair and overhaul (MRO), aero-manufacturing, education and training, systems integration, and engineering & design activities.

Malaysia has developed a strong local supply chain, which consists of both foreign and local industry players. The country is pushing for further development in the MRO activities, and manufacturing of parts and components to boost market penetration.

“MIDA continues to explore opportunities for collaboration between local industry players and international aerospace companies through our ‘Industry Linkage’ programmes. The first Industry Linkage programme was held last year in Turkey which was participated by 9 Malaysian companies. This year, as a continuity we plan to organise 3 more of such programmes,” added the MIDA CEO.

MIDA’s other initiatives include its Supply Chain Conferences with Tier 1 and Tier 2 companies. The most recent conference organised by MIDA was with Rolls Royce in December 2018. Such events aim to facilitate local vendor development and enhance the capabilities of Malaysian companies in supporting MNCs’ operations.

Speaking on an upcoming engagement, Dato’ Azman highlighted that MIDA will be participating in the upcoming Langkawi International Maritime and Aerospace Exhibition (LIMA ’19) from 26 to 30 March. “We will be part of the Malaysian Pavillion to promote the Government’s initiatives in developing the aerospace industry, which also includes the ship building and ship repair (SBSR) industry. In addition, MIDA will be having a seminar on the aerospace industry on 27 March at LIMA. I would like to invite all industry players and relevant stakeholders to join us at our event,” said the MIDA CEO.

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For more information, please contact:

Mr. Zahirul Ishak

Director, Transportation Technology Division

Malaysian Investment Development Authority (MIDA)

Tel: 03-2267 6621

Email: [email protected]

Connect with us today @OfficialMIDA on Twitter, Facebook, Youtube and Instagram.

Posted on : 08 March 2019

Malaysia Welcomes Another Homegrown Aerospace Company


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Second phase will commence at the end of April 2019

Kuala Lumpur, 21 March 2019 – A total of 24 graduates from the first batch of the Apprenticeship Programme received their ‘Sijil Kemahiran Malaysia’ at the convocation ceremony held at the Malaysian Investment Development Authority (MIDA)’s headquarters, today. The programme is a joint-effort between MIDA and the Ministry of Education Malaysia (MOE), the Department of Skills Development (DSD) and the Federation of Malaysian Manufacturers (FMM).

The Apprenticeship Programme is a 2-year initiative which targets PT3 (‘Pentaksiran Tingkatan Tiga’ or Form Three Assessment) leavers. This programme is adapted from the German TVET training model, of which 70 per cent of training is carried out in the industry while the remaining 30 per cent is conducted in training institutions. This is a fast-track programme which aims to provide skilled workers that can be absorbed immediately into the industry.

The event was attended by Mr. Zabidi Mahbar, Deputy Chief Executive Officer of MIDA and Dato’ Sri Norazman Ayob, Deputy Secretary General (Trade) of International Trade and Industry (MITI) who represented the Minister of MITI, YB Datuk Darell Leiking.

In YB Datuk Darell’s speech, which was read by Dato’ Sri Norazman Ayob, “This Apprenticeship Programme is a good example of MIDA’s industry-academia initiative to produce a high-skilled workforce capable of contributing substantially to the industry development. In line with the National Policy on Industry 4.0 or the Industry4WRD launched last year, the Government continues to promote cooperation between educational and skills institutions with the industry to ensure that graduates do not only have basic knowledge but are able to adapt to current technological changes. I am very delighted to know that MIDA will be bringing this programme to the national level with greater involvement from more than 100 companies and 700 students.”

The first series of the Apprenticeship Programme involved five companies namely Royal Selangor International, Top Glove, Gethi Engineering, Fire Fighter Industry and YKGI Holdings as well as three vocational colleges namely Setapak Vocational College, Klang Vocational College and Sungai Buloh Vocational College.

Mr Zabidi, Deputy CEO of MIDA who read the speech on behalf of Dato’ Azman Mahmud, CEO of MIDA, said, “The availability of skilled manpower is crucial in transforming all sectors of the economy towards knowledge-intensive activities, promoting employee productivity and attracting quality investments into Malaysia. Every year, the number of manufacturing projects approved by MIDA continues to increase. Therefore, industry-led training for the development of local skilled-workforce and industry-academia cooperation is required to ensure that the offerings are in line with industry demand. Hence, this program is a game-changer to drive the TVET agenda forward. The second phase of the MIDA-MOE-FMM Apprenticeship Programme will commence in late April 2019. MIDA urge more companies to come on board to create more placement opportunities for the participants of this programme.”

These graduates were presented with their ‘Sijil Kemahiran Malaysia’or Malaysian Skills Certificate in the areas of Industrial Machining, Electrical Technology, Electronic Technology and Welding Technology.

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About MIDA

MIDA is the Government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967, MIDA has grown to become a dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses, seizing opportunities arising from the technology revolution.

For further inquiries, please contact:

Mr. Mohamad Ismail Abu Bakar

Director, Industry Talent Management and Expatriate Division, MIDA

Tel.: 03-2267 6715 | Email: [email protected]

Posted on : 21 March 2019

24 Students Graduated From MIDA-MOE-FMM Apprenticeship Programme


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